SUNWORKS INC's gross profit margin for the third quarter of its fiscal year 2023 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. SUNWORKS INC has weak liquidity. Currently, the Quick Ratio is 0.74 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 69.41% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q3 FY23 | Q3 FY22 |
---|---|---|
Net Sales ($mil) | 28.7 | 40.71 |
EBITDA ($mil) | -9.17 | -4.17 |
EBIT ($mil) | -10.17 | -5.4 |
Net Income ($mil) | -36.4 | -5.39 |
Balance Sheet | Q3 FY23 | Q3 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 2.45 | 14.52 |
Total Assets ($mil) | 67.5 | 121.37 |
Total Debt ($mil) | 6.25 | 3.43 |
Equity ($mil) | 21.61 | 70.66 |
Profitability | Q3 FY23 | Q3 FY22 |
---|---|---|
Gross Profit Margin | 29.8 | 48.35 |
EBITDA Margin | -31.94 | -10.24 |
Operating Margin | -35.43 | -13.27 |
Sales Turnover | 2.29 | 1.15 |
Return on Assets | -92.58 | -28.56 |
Return on Equity | -289.21 | -49.07 |
Debt | Q3 FY23 | Q3 FY22 |
---|---|---|
Current Ratio | 1.24 | 1.63 |
Debt/Capital | 0.22 | 0.05 |
Interest Expense | 0.39 | 0.05 |
Interest Coverage | -25.81 | -110.24 |
Share Data | Q3 FY23 | Q3 FY22 |
---|---|---|
Shares outstanding (mil) | 48.93 | 35.16 |
Div / share | 0.0 | 0.0 |
EPS | -0.84 | -0.16 |
Book value / share | 0.44 | 2.01 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 6918438.0 | 1260438.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.11 indicates a significant discount versus the S&P 500 average of 4.54 and a significant discount versus the subsector average of 25.27. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, SUNWORKS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
SUNW NM | Peers 52.98 | SUNW NM | Peers 54.59 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. SUNW's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. SUNW's P/CF is negative making the measure meaningless. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
SUNW NM | Peers 27.22 | SUNW NA | Peers 2.16 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. SUNW's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
SUNW 0.11 | Peers 25.27 | SUNW -36.84 | Peers 36.28 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SUNW is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, SUNW is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
SUNW 0.02 | Peers 13.13 | SUNW 10.63 | Peers 11.13 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SUNW is trading at a significant discount to its subsector on this measurement. |
Average. Comparing a company's sales growth to its subsector helps to determine if the company is adding or losing market share. SUNW is keeping pace with its peers on the basis of sales growth. |
|||||||||||||||||||||||